VAT and education in the GCC

Impacts of VAT on education institutions in the Gulf

Economic and social growth are supported by investments in the education sector. The Gulf Cooperation Council (GCC) countries have been implementing major reforms with the aim to enhance the level of education. So how will Value Added Tax (VAT) implementation in the GCC affect the education sector?

The release of the Treaty is a landmark event for the region and marks the true beginning of VAT implementation across the GCC. The Treaty establishes the common principles of the VAT system which is to apply in each GCC State and provides a structure on which domestic VAT legislation will be developed. The publication of the Treaty means we have clarity over the principles which every State will be required to enact and can confirm our understanding of how VAT in the GCC will impact the education sector.

The summary document aims to give a greater understanding of the introduction of VAT in GCC and how VAT will impact the education sector and what are the associated challenges for educational institutions and related parties as per the below:

Basic concepts of the GCC VAT Treaty

What will be the VAT liability for supplies in the education sector in the GCC?

What are the business issues that will arise upon the introduction of VAT in the GCC?

Key contacts

Partner | Indirect Tax

Bruce is a VAT specialist based in Dubai and has over 30 years of experience in VAT implementation processes most recently in Australia and Malaysia. He is using his experience in the GCC to advise on... More

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